(b) One of the ways to value bonds issued by a corporation is to use the risk-neutral valuation model. Consider a 1-year zero-coupon bond issued by a pharmaceutical firm called DNA Drugs with a face value of $1,000 that is currently trading at $950.50. Assume that the annual risk-free interest rate is 3.5 percent. Suppose that if DNA Drugs defaults, the recovery rate of the bond is 65 percent. (i) Find the risk-neutral probability of default. (ii) Bloomberg just released news that a new drug to treat COVID-19 from DNA Drugs got approved by the government for large scale human testing. This event decreased the risk-neutral probability of default by 1 percent. In other words, if the probability of default was x percent in part (a), now it is going to be (x - 1) percent. At what price will the bond be trading after the news? In addition to the information given in part (b) above, assume now that the risk-free interest rate is decreased from 3.5 percent to 3.0 percent. Find the price of the bond